Insurance - Ch 1

Question 1

Some risks are unavoidable and some risks are easily avoidable.

What are 2 ways minimize losses ?

Answer 1

Avoid the risk

Minimize the risk

Question 2

What was the first nation to adopt a Social Insurance Program ?

Answer 2

Germany became the first nation in the world to adopt an old-age
social insurance program in 1889.

Question 3

When was the first Life Insurance Policy taken out ?

Answer 3

first life insurance policy taken out is credited to :

Richard Martin in 1583. The policy was a one-year term policy on the life of William Gybbon, who was a citizen of London

Question 4

The advisor must have a working knowledge of risks that can wreak
financial havoc on a person’s or family’s financial situation. Some of
these risks are ??

Answer 4

1. Premature death
2. Disability
3. Health issues
4. Liability issues
5. Property damage
6. Long-term care needs
7. Running out of money during retirement

Question 5

Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), Congress established the ______________________________) within the U.S. Department of the Treasury

Answer 5

Federal Insurance Office (FIO)

Question 6

FIO is authorized, pursuant to the Dodd-Frank Act, to ?

Answer 6

• monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system;
• monitor the extent to which traditionally under-served communities and consumers, minorities, and low-and moderate-income persons have access to affordable insurance products;
• recommend to the Council that it designate an insurer as an entity subject to regulation as a non-bank financial company supervised by the Board of Governors of the Federal Reserve System (Federal Reserve);
• coordinate federal efforts and develop federal policy on prudential aspects of international insurance matters, including representing the United States, as appropriate, in the International Association of Insurance Supervisors and assisting the Secretary in negotiating covered agreements; and
• consult with States regarding insurance matters of national importance and prudential insurance matters of international importance.